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The Charles Schwab Corporation to Acquire TD Ameritrade

The Charles Schwab Corporation and TD Ameritrade Holding Corporation announced yesterday that they have entered into a definitive agreement for Schwab to acquire TD Ameritrade in an all-stock transaction valued at approximately $26 billion. The combination brings together two leading firms with proud and similar histories of making investing more accessible to all. Please see below some important highlights of the press release. Click here to see the full press release.

This transaction creates strategic benefits for the combined organization and will further improve the investing and trading experience to both Schwab and TD Ameritrade clients. It allows Schwab to continue to add further scale on top of its organic growth, helping to drive sustainable, profitable growth and long-term value creation. Clients of both firms should benefit from the broader and deeper array of services. The resulting combined firm is expected to serve 24 million client accounts with more than $5 trillion in client assets. The acquisition will add to Schwab approximately $5 billion more in annual revenue with approximately $1.8 to $2 billion in expense synergies.

The parties expect the transaction to close in the second half of 2020 and will begin the integration process immediately thereafter. The integration process is expected to take between 18-36 months, following the close of the transaction.

 

Disclosure: Covington Investment Advisors, Inc. is a Federally Registered Investment Advisor.  The information contained herein is general in nature and is provided solely for educational and information purposes and does not constitute legal, financial or tax advice.  Opinions and forward-looking statements expressed are subject to change without notice.  Past performance is no guarantee of future results.  Covington Investment Advisors, Inc. uses reasonable efforts to obtain information from sources which it believes to be reliable and does not endorse, approve, certify or control the third-party content referenced.

 

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Covington Investment Advisors, Inc.
301 E. Main Street
Ligonier, PA 15658
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Email: covington@covingtoninvestment.com